Defense industry of Nouvelle Alexandrie
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The defense industry of Nouvelle Alexandrie is a strategically important economic sector of the New Alexandrian economy and one of the largest employers in the country. It is a key player in the global arms industry and supplies many of its allies and partners of the Raspur Pact, as well as being a major supplier to the Federal Forces of Nouvelle Alexandrie.
The New Alexandrian defense industry has significantly developed given key government investments made in research and development and expanding manufacturing since 1673 AN. By 1694 AN, Nouvelle Alexandrie's more than 250 defense and defense-related firms (thousands of other firms were engaged in subcontracting) fell into one of three ownership categories: state-owned enterprises, privately owned firms, and firms with mixed state and private ownership. Nouvelle Alexandrie's defense industry employs close to 1.5 million people in the Federation. The defense industry accounts for 15% of all manufacturing jobs in the Federation. Nouvelle Alexandrie also has implemented programs to attract and keep talent and skills needed for the development of a healthy and robust economy, this has included subsidies and visa programs to attract scientists, engineers, and innovators.
Growth of the defense industry was achieved by a mixture of imported technology and the innovation of New Alexandrian entrepreneurs, scientists, and engineers. Many New Alexandrian firms purchased production rights and entered into joint ventures with defense companies that supply Raspur Pact nations to manufacture both end products and components. Nearly every electronics firm had links of some sort with Natopian and Constancian producers.
The development of the defense industries in Nouvelle Alexandrie has been characterized by radical and sometimes contradictory changes. They were built to serve local military needs, yet in recent decades the bulk of their activity has switched to supplying not just the Federal Forces of Nouvelle Alexandrie, but supplying Raspur Pact nations. Somewhat paradoxically, the earlier dependence on foreign suppliers has now been replaced by a dependence on overseas customers.
Nouvelle Alexandrie's defense industries, originating from underground workshops and gargantuan state-owned enterprises in the pre-Federation era, are today the mainstays of national defense. In contrast to the low quality and poor reliability of defense products in the early years of its history, the label “Made in Nouvelle Alexandrie” is nowadays a guarantee of superior technology and high quality.
Nouvelle Alexandrie produces a wide range of products from ammunition, small arms, and artillery pieces to sophisticated electronic systems, missiles, tanks, and ships. Having expanded in territory quickly since 1685 AN to cover a vast Federation across several continents and islands, Nouvelle Alexandrie is in the process of building a comprehensive and modern standing armed forces - the Federal Forces of Nouvelle Alexandrie. The defense industry of Nouvelle Alexandrie, along with a vast network of Raspur Pact suppliers and partners, are working to furnish it with an arsenal of highly advanced and durable military hardware.
The government, which owns three major defense firms, also encouraged the formation of private companies to equip the Federal Forces of Nouvelle Alexandrie. After the formation of the Federation, the government engaged in an aggressive program of privatization of many state-owned companies that were supplying the military. The process of privatization and a favorable business environment (including high demand from the Raspur Pact) led to the development of a sophisticated defense industry. This inevitably led to exports, which today account for a large part of Nouvelle Alexandrie's export revenues and allows the country's defense industry to compete against some of the largest companies in Micras for foreign contracts. This is in addition to producing many of the arms needed for the Federation's own defense and for many of its Raspur Pact partners, like Constancia, Ransenar, and others.
To ensure the success of the new Republic, the new government based in Punta Santiago decided to pursue a policy of armed neutrality, pursuing an independent foreign policy, in order to ensure the survival of the nation and avoid unaffordable foreign entanglements. The doctrine that was pursued at the strategic level was defensive, while its tactics were offensive. Given the country’s lack of territorial depth, Alduria had to take initiative when deemed necessary and, if attacked, to quickly transfer the battleground to the enemy’s land or into the Green. To secure these objectives, the presidential administrations of Alejandro Campos and later Gerhardt Eugen Seydlitz sought to provide generous incentives for the development of the native defense industry. An active industrial policy, relaxation of taxes for start-ups, and incentives for R&D sought to start and cultivate a long-term qualitative domestic advantage.
The manufacture of small weapons and explosives for the forerunners of the Armée Altusienne Unie and the Aldurian military had begun in small arms factories around Punta Santiago, Narbonne, and Hatkrou around 1661 AN, inheriting in some areas an existing infrastructure for the production of weapons from when some of these cities were part of Alexandria. When Alduria was founded in 1669 AN, it acquired a vast array of surplus military aircraft, tanks, artillery, and weapons from the Armée Altusienne Unie and the Punta Santiago Arsenal. The Aldurian arms industry started out, initially, as a specialty of upgrading, repairing, and overhauling such equipment, usually acquired from Jingdao, Natopia, Shireroth, Constancia, Caputia, or Krasnocoria. During the period of armed neutrality, Alduria became a prominent client of both Raspur Pact and USSO defense suppliers. The West Baatharzi War and the Verionian-Raspur War gave further impetus to the development of a strong, native defense industry that could supply the military with the best hardware.
With the end of neutrality at the start of the Verionian-Raspur War and Alduria's accession to the Raspur Pact, the defense industry of Alduria gained access to a steady market of high demand for quality military hardware. The awkward period of relations with some of Alduria's closest allies in the Raspur Pact following the 1685 Aldurian coup d'état shocked the Aldurian military into rethinking its traditional policy of reliance on imported munitions. Consequently, a new policy was promulgated according to which Alduria would henceforth produce its own major weapon systems. It was also during this time that the defense industry began to make a concerted effort to employ their research and development teams in devising products for non-military markets and, more frequently, in adapting defense technology for civilian applications. Many of the most innovative products developed by the New Alexandrian civilian high tech industry, especially in the field of telecommunications, trace their origins to military technology.
The Wechua Nation, prior to the Restoration in 1673 AN, had a rather small native defense industry. For the most part, the Wechua Nation depended on access to hardware through its partnership with the Raspur Pact and also through its large western neighbor, Caputia. The Wechua Nation had undergone a particularly bloody civil war that further emphasized to the government that at the very least, government-owned corporations were needed to ensure that the Wechua government forces were able to prevail in the civil war.
After the Restoration, the government of Vicaquirao Alvarez passed economic reforms that liberalized the market and allowed the government to partner with a myriad of small to medium companies and contractors, including 16 defense start-up companies or contractors. The government made it a policy to invest and give regulatory preference to the development of a native defense industry, with the assistance of Raspur Pact partners (Constancia and Natopia) and the Republic of Alduria, who was heavily dependent on the Wechua Nation's foodstuff exports.
Raspur Pact assistance
The stunning success and rapid development of a strong native defense industry in Nouvelle Alexandrie are credited largely to the transfer of technological knowledge, technical assistance, access to financial markets, and growing demand for military hardware that comes from the Raspur Pact. The historical dependence on foreign suppliers has now essentially been replaced by a dependence on overseas customers.
The largest government-owned military contractors are:
- Armaments of Alduria;
- Aldurian Aviation Corporation;
- Wechua Manufacturing Corporation;
- the National Research and Development Corporation.
The New Alexandrian defense industry is dominated by several large private contractors as follows:
- Javelin Industries;
- the Pontecorvo Firm;
- Kerularios & Company;
- Neridia Defense Industries;
- ESB Susa;
- United Manufacturing Corporation;
- Rimarima Armaments;
- Sarbanes-Lopez CyberSecurity.
The private sector is further subdivided into several tiers of smaller, more specialized companies and suppliers as well. There are hundreds of other companies and contractors throughout the Federation.
Joint public-private partnerships
There are several joint public-private partnerships: